DUSHANBE, January 6, 2016, Asia-Plus — The International Islamic Trade Finance Cooperation (ITFC), a member of the Islamic Development Bank Group (IsDB), signed a Memorandum of Understanding (MoU) with Agroinvestbonk, a private commercial bank established in Tajikistan.
The document was inked by Mr. Murodali Alimardon, Chairman of Agroinvestbonk and Mr. Mohammad Iqbal Azad, Officer-in-Charge, on behalf of the ITFC in ITFC headquarters in Jeddah on January 3.
According to ITFC, the main objective of the MoU is the promotion of Islamic finance through multiple Islamic finance modes and products. In addition, the two entities will cooperate jointly in identifying structure and finance trade operations in Tajikistan through the allocation of funds.
Commenting on the signing of the agreement, Mr. Muhammad Iqbal Azad said, “This signing is a reflection of a successful partnership between ITFC and Agroinvestbonk”. Mr. Azad added, “It is ITFC”s mandate to support member countries” strategic sectors and to improve their trading capacity.”
From his part, Mr. Murodali, added that “both parties will use their best efforts to bring together those capabilities and resources to search opportunities for joint trade financing cooperation in Tajikistan that are within the parameters of Shariah principles” emphasizing on the fruitful partnership with ITFC.
It is worth mentioning that ITFC have supported Tajikistan’s strategic sectors since its inception in 2008, where USD 64 million have been extended to the government, in cooperation with Agroinvestbonk.
Founded in 1992, Agroinvestbonk, with headquarters in Dushanbe, has main branches in Khorog, Khujand, Kulob and Qurghon Teppa and more than 60 other branches across the republic.
Agroinvestbonk is one of the leading providers of finance to micro, small and medium-sized enterprises and the agricultural sector in Tajikistan. Through its substantial rural network it reaches out beyond the capital Dushanbe, to areas where access to finance remains difficult for private entrepreneurs.
The government now owes 52 percent of shares and the remainder is owed by initial founders, whose share decreased after the recapitalization.
The European Bank for Reconstruction and Development (EBRD) in August 2009 acquired a stake of 25 percent + 1 share in Agroinvestbonk for up to 50 million somoni in order to strengthen the capital base of Agroinvestbonk and support its growth and further development.
In 2012, the government made a decision on recapitalization of Agroinvestbonk and injected 700 million somoni in the bank. 200 million somoni went to replenishing the bank authorized capital stock and 500 million somoni were assigned for the swap.
Murodali Alimardon, who had previously served as Deputy Prime Minister, was appointed to head Agroinvestbonk on April 1, 2015, replacing Suyunkhon Rustamov.
The International Islamic Trade Finance Corporation is an autonomous entity within the Islamic Development Bank Group created with the purpose of advancing trade to improve the economic condition and livelihood of people across the Islamic world. ITFC has consolidated all the trade finance businesses that used to be handled by various windows within the IsDB Group. It commenced operations in January 2008. The consolidation of the IsDB Group’s trade finance activities under a single umbrella increased the Corporation’s efficiency in service delivery by enabling rapid response to customer needs in a market-driven business environment.
ITFC aims to develop and expand intra-Organization of Islamic Cooperation (OIC) trade. ITFC advances trade by contributing to the development of markets and trading capacities to help all OIC member countries do business more effectively with each other and the rest of the world.
